By Joseph Akujuobi
Sir: As Nigeria’s 2026 budget cycle progresses, 34 out of the 36 states have now their proposed budgets passed by their respective State Houses of Assembly. A review of these submissions reveals a significant surge in subnational spending, with a combined total of ₦36.98 trillion, representing a 45% increase from the ₦25.58 trillion recorded in 2025.
This sharp rise in state-level budgets signals a strong push by state governments to prioritise infrastructure, improved service delivery and development programmes. On paper, it reflects growing ambition and an acknowledgement that states must do more to drive economic growth and improve the quality of life for citizens.
Notably, 12 states have crossed the ₦1 trillion budget mark, highlighting widening fiscal gaps across the country. Lagos State leads with a ₦4.44 trillion budget, maintaining its position as Nigeria’s largest subnational economy, while Kano State has joined the trillion-naira club with a budget of ₦1.48 trillion.
A breakdown by geopolitical zones further highlights regional economic strengths. The South West accounts for the highest share of subnational budget allocations, reflecting its stronger internally generated revenue and higher levels of economic activity. In contrast, the North East records the lowest share, with just 12% of total the subnational budgets, despite the region facing some of Nigeria’s most pressing development challenges, including poverty, insecurity, and internally displaced persons (IDPs).
While the increase in spending suggests improved revenue confidence, driven by higher federal allocations and IGR growth in some states, it also raises important economic questions. Large budgets can stimulate local economies, create jobs, and close long-standing infrastructure gaps if effectively deployed. However, they also increase fiscal risks, particularly where revenue projections are overly optimistic without real strategies to generate revenues or where debt servicing consumes a growing share of state finances.
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For the average Nigerian, the true value of these record-breaking budgets will not be measured in trillions of naira but in tangible outcomes: better roads, functional hospitals, quality schools, affordable transportation/healthcare, and real economic opportunities. This signals why citizens participation and need assessments are crucial. Without participation, transparency, accountability, strong oversight and clear links to community needs, increased state spending and weak budget implementation could turn this expanded budgets into missed opportunities rather than delivering the dividends of democracy.
As these budgets move through legislative scrutiny in some states and the eventual implementation in all states, Nigerians will be watching closely. Key questions remain: Do these allocations truly reflect the needs of communities? And, most importantly, will these funds be deployed efficiently to improve the everyday lives of citizens across the states?
Ultimately, the success of these record-breaking budgets will not be judged by their size or amount, but by their impact. Nigerians are looking for results they can see and feel, meeting their priorities. Citizens must shine their eyes to join the call to participate, prioritise and build a country that serves all.
• Joseph Akujuobi
Communications Officer
PROMAD Foundation
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